New Delhi: Medicine prices in India are expected to rise sharply after a 30% surge in raw material costs, driven by a scarcity of container ships amid the Iran conflict, according to a report by The Economic Times.Industry officials stated that vessel shortages have restricted the movement of active pharmaceutical ingredients (APIs) from China, which remains the largest supplier to Indian manufacturers. This disruption is expected to impact local manufacturing and push up retail prices, as producers are forced to pass the higher costs to consumers.According to data reported by ET, the prices of certain key raw materials have risen by more than 60%. The price of glycerine has jumped 64% since December, while paracetamol prices have increased by 26%.An industry official noted that importers, pressured by surging raw material costs, are passing the burden directly to large pharmaceutical companies.“With APIs up, solvents spiking 20% to 30%, and every shipping line charging a premium, importers have no room to absorb,” the official was quoted as saying by ET.According to market data on raw material price inflation between December and March, the cost of Nimesulide rose by 53%, from Rs 425 to Rs 650. Norfloxacin saw a 14% increase, moving from Rs 2,375 to Rs 2,700, while Ornidazole climbed 25%, from Rs 960 to Rs 1,200. The price of Cloberazole Propionate surged by 47%, jumping from Rs 39,500 to Rs 58,000.“Pharmaceutical solvents, made from petrochemicals, have surged 20% to 30% within a week as the Middle East conflict continues to disrupt global oil supply,” pharmaceutical industry expert Mehul Shah told ET. “Since solvents are a direct production input, this directly inflates pharma manufacturing costs. Importers and suppliers have started passing this on to the pharma companies.”Experts warn the scenario may worsen if the conflict is prolonged. The industry has urged the Union government to allow an increase in drug prices to offset the elevated input costs.“[With] the pharma industry being highly price regulated, it is difficult to absorb the unprecedented increase in the price of inputs,” Federation of Pharma Entrepreneurs national president Harish Jain was quoted as saying by ET. “The National Pharmaceutical Pricing Authority (NPPA) should take cognisance of this extraordinary situation and allow a price hike over and above mandated limit as per DPCO 2013 Para 19.”Pharmaceuticals Export Promotion Council of India (Pharmexcil) former chairman Dinesh Dua underlined that the Iran war is upending shipping routes, escalating freight costs, and may soon start affecting the availability of essential medicines.Industry experts noted that pharmaceutical companies operate on just-in-time inventory management to ensure production efficiency, keeping stock levels at an absolute minimum. This inventory cushion may be entirely eroded if the conflict continues for another 10 to 15 days.The logistics crisis is also threatening international supply chains, as markets including the United Arab Emirates, Saudi Arabia, and Oman are highly dependent on India for affordable medicines. The doubling of freight charges, compounded by surcharges ranging from $4,000 to $8,000 per shipment, is placing unprecedented financial pressure on Indian pharmaceutical manufacturers.